Federal Reserve Chair Jerome Powell is slated to deliver a speech tomorrow, July 23, 2025, at 8:30 AM EST, an announcement that comes amidst heightened tensions between Powell and the Donald Trump administration.
The upcoming speech has fuelled speculation, with William John Pulte, Director of Federal Housing, suggesting on X (formerly Twitter) that a “resignation speech” from Powell is a possibility, though he did not believe it would occur tomorrow.
Trump Administration’s Mounting Pressure on Powell
Powell has found himself at loggerheads with the Donald Trump administration, facing escalating criticism and pressure. U.S. Treasury Secretary Scott Bessent has further intensified the situation, stating that the Federal Reserve’s vital independence on monetary policy is threatened by its “mandate creep” into non-policy areas. Bessent called on the US Fed to conduct an exhaustive review of these operations, implying that such an examination could scrutinize the Fed’s performance beyond its traditional monetary policy roles.
President Trump has repeatedly railed against Powell, urging him to resign due to the central bank’s reluctance to cut interest rates. Trump has consistently advocated for lower interest rates to stimulate the economy, a stance that has put him at odds with the Fed’s data-dependent approach to monetary policy.
In recent days, Trump has also criticized the $2.5 billion renovation at the Fed’s almost 100-year-old Washington headquarters, which has exceeded its budget. Trump has suggested that there could be fraud involved in the project and indicated that this could be a reason to remove Powell from his position. The Federal Reserve, for its part, has taken steps to defend the renovation project, publishing videos and notes on its proposed plans.
Adding to the pressure, Congress member Anna Paulina Luna has formally referred Powell to the Department of Justice (DoJ) for criminal investigation. Luna alleges that Powell “knowingly misled both Congress and executive branch officials about the true nature of a taxpayer-funded project” related to the renovation, specifically accusing him of lying under oath about luxury features and previous renovations to the Eccles Building. Luna’s referral cites potential violations of 18 U.S.C. § 1621 (Perjury) and 18 U.S.C. § 1001 (False Statements).
Meanwhile, speaking with media earlier on Monday, Treasury Secretary Bessent declined to comment on reports that he had advised Trump against firing Powell, stating that such a decision would be Trump’s alone. However, Bessent did not shy away from questioning the Fed’s overall operations. “If this were the (Federal Aviation Administration) and we were having this many mistakes, we would go back and look at why. Why has this happened?” said Bessent, whom Trump has mentioned as a possible candidate to replace Powell. “All these PhDs over there, I don’t know what they do.”
The ongoing friction highlights a significant power struggle over the direction of U.S. monetary policy and the independence of the Federal Reserve.